Scott,
Let me throw a little cold water on the exuberance, and in doing that I only wish to introduce a little reality as calculated by my favorite expert, Me!!
Taking the reported figures, I calculate a production cost which includes the inflated refiner cost of $591.38 per ton, and a profit of $418.62 per ton at present production levels. So, at 15 tons per day, we arrive at a profit of $.08 per share, assuming 20mil shares out, and .12 at 25 ton per day. I will not project share price here, but will tell you that there are many shares producing less profit than $.08 that are priced at much higher levels than this stock even given the recent rise.
I do expect some retraction and consolidation here, but future price action remains to be seen. There is some small overhead in terms of those who stocked up a very low valuations ( like me, but I am not a seller here), but we will watch action and wait for the market to fairly value the stock.
Futurevalue, Jack!! |
